Line of Business
Peer 1 promises cheaper, easier SaaS for ISVs
The infrastructure provider launches an incubation program that will give deep discounts on consulting services for companies moving to the on-demand model11/29/2007 8:55:00 AM By: Shane Schick
Canadian infrastructure provider Peer 1 is using deep discounts on consulting services as part of a program to entice independent software vendors to make the move to an on-demand model for providing applications to their customers.
Vancouver-based Peer 1 on Wednesday described the program, which quietly launched about a month ago, as an “incubation and enablement” service. Using Microsoft products such as SQL Server, participants will work with Peer 1 and Microsoft experts to either create software-as-a-service (SaaS) versions of their products or new products that can be delivered on demand.
In the traditional on-premise model, companies buy software and install it locally and use it for a fee. In the SaaS model, enterprises use applications only as they need them, which can create a lot more fluctuation in terms of demand.
For companies like Peer 1, SaaS represents a business opportunity to provide the infrastructure that allows companies to scale business depending on the ebb and flow of what enterprises want.
Robert Miggins, vice-president of business development with Peer 1, said the program will make the move to SaaS a lot more cost-effective for independent software vendors (ISVs), particularly if they are using Microsoft technologies. Miggins said some customers could expect to get $10,000 worth of business or technical consulting for $3,000, or about a third of the cost. This might include, for example, engineers from Microsoft and Peer 1 helping an ISV figure out how to ensure they can reliably support their users if they receive a lot of requests for an on-demand application at the same time.
“It's a bit of a discretionary thing because there are some very real costs borne on our side. If we feel like we're going to get the benefit of a great customer relationship, then we're happy to make the investment now,” said Miggins, adding that much of the brainpower would come from Microsoft-approved consultants. “We would help create the engagements, but it's not like we're getting into a different business ourselves.”
Page Navigation 1) Enticing ISVs2) Playing in the sandbox
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